The crypto market may have begun the new year in the same spirit it ended 2025, but investors are currently facing a purported “identity crisis” where digital tokens are being converted to equity, governance instruments, or purely made for user acquisition.
According to a recent report from Delphi Digital, a bearish market sentiment has taken hold over the past few months, with some market watchers claiming the top of the four-year market cycle has already passed.
The crypto market analytics platform believes investor sentiment has changed due to Bitcoin’s muted end-of-year performance, but the lines between traditional financial assets and crypto are also blurred, as companies experiment with new forms of tokenization.
Delphi market analysis: Equity is moving onchain
Per Delphi’s 2026 outlook, the distinction between tokens and traditional equity is now more difficult to define since companies like California-based Securitize are filing for initial public offerings (IPOs) while simultaneously looking into tokenization.
Crypto is facing a token identity crisis.
The lines are blurring on both sides. Equity is moving onchain with companies like Securitize filing for IPOs. Tokens are becoming more equity like through MetaDAO's ownership coins and Uniswap's fee switch.
Customer Acquisition Cost… pic.twitter.com/CgjHQuHq8q
— Delphi Digital (@Delphi_Digital) January 1, 2026
Some crypto projects, such as MetaDAO have launched ownership tokens that mimic how traditional financial firms issue shares, and decentralized platform Uniswap has added fee switches, much like how equity-like returns are for token holders.
Among the upcoming token models is the Customer Acquisition Cost (CAC) tokens, which are distinct to equity-like tokens or governance mechanisms because they fund user acquisition at scale.
PayPal is one of the many companies moving forward with tokenization, having spent over $60 million in venture capital cash on incentives to begin its quest for digital assets. Yet, per Delphi, CAC tokens could achieve comparable results through token emissions, where early adopters can receive larger rewards that taper as the network grows.
The analysts cited Worldcoin as the best example of this model, reportedly spreading over 500 million WLD tokens to onboard users and expanding the footprint of its World App. According to data from Dune analytics, the project crossed $3.8 billion market cap level during the bull market run in mid-2025, although its token’s price traded below $2.5 in the whole of last year.
US regulatory clarity opens crypto market to institutions
Changes in regulations have made things much clearer for the crypto industry, especially in the US and Europe. POTUS signed an executive order in the US to encourage responsible innovation and the use of stablecoins backed by the dollar. However, he also clearly said that a CBDC was not an option.
The Securities and Exchange Commission (SEC) went a step ahead to support experimentation by issuing no-action letters for the Depository Trust Company’s tokenization pilot and the Fuse Crypto Token.
US Congress is in support of crypto-friendly candidates for 2026 midterms. This comes against the backdrop of discussing the CLARITY Act, which places crypto regulatory oversight in the hands of the CFTC.
Although some economists believe there are still some hiccups in country-by-country jurisdictional rules, MiCA has been protecting investors and has made the environment more palatable for institutions to join in.
Crypto market mulls optimism as Bitcoin trades just below $90,000
Despite the ongoing gloomy outlook, there is a perception that the industry has grown enough to handle downturns and escape historic crypto winters.
“It’s more of an industry now. So if there is a winter or a downturn, it’s not going to be a complete lights-out moment,” Kaiko senior researcher Adam Morgan McCarthy told NPR.
The crypto derivatives market has approximately $2.2 billion in Bitcoin and Ethereum options reaching expiration, with the former taking up $1.87 billion in notional value currently outstanding.
At the time of this reporting, the king coin is trading at around $88,970, just above the $88,000 “max pain” point, where option writers may start counting heavy losses. Coinglass open interest data shows 14,194 call contracts have been placed against 6,806 puts, which could mean hodlers are bracing for a price comeback upwards of $90,000.
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